Title: FATF Maintains Iran’s High-Risk Status, Acknowledges Renewed Engagement
A Continued Call for Action
In a recent statement, the Financial Action Task Force (FATF) has confirmed that the Islamic Republic of Iran will remain on its list of high-risk jurisdictions. The global money-laundering and terrorist-financing watchdog stated that this status will persist until Iran fully implements its agreed-upon Action Plan.
Recognition of Diplomatic Efforts
The FATF’s latest communiqué notably acknowledged Iran’s resumed interaction with the international body. This engagement is focused on addressing strategic deficiencies within its national systems for combating money laundering and terrorist financing. The statement referenced Iran’s high-level political commitment, made in 2016, to fulfill this Action Plan but noted that the majority of these commitments remain unfulfilled.
The Path of Counter-Measures
Consequently, since February 2020, the FATF has continued its call for member countries to apply effective counter-measures against Iran. This international position is set to remain in force until further notice from the task force.
Scrutiny on International Conventions
The FATF also addressed Iran’s recent report on its adoption of the “UN Convention against Transnational Organized Crime” (the Palermo Convention). While the task force took note of Iran’s submission and ongoing dialogue, it assessed that the reservations declared by Tehran upon joining the convention are “too broad.” It concluded that the domestic implementation of the Palermo Convention, in its current form, does not align with FATF standards.
The Road Ahead
The statement concluded by emphasizing a clear path forward. Iran’s high-risk listing will be maintained until the Action Plan is completely executed. However, the FATF indicated that should Iran demonstrate tangible progress in the full adoption and implementation of the Palermo and Terrorist Financing conventions, it would then consider subsequent steps, including the potential suspension of counter-measures. This decision comes as the Islamic Republic of Iran has formally approved its accession to the Palermo and CFT conventions.